Sandvik has entered a joint venture agreement with China’s Lingong Group Jinan Heavy Machinery company for the production of surface and underground mining equipment.
Sandvik will be the majority shareholder, with the venture expected to begin in the second half of 2016. It will become part of the new Sandvik Mining and Rock Technology business division, which will begin operation in July. The division will have a decentralised business model with separate product areas based on the product’s particular offerings.
The venture’s focus will be on sourcing, assembly, sales and service of surface drills, and underground loaders and trucks. These products will be targeted at mid market customers and sold under an independent brand.
President of Sandvik Mining Lars Engström said he was excited about the expansion of the company’s mid market offerings with partner Lingong.
“This joint venture agreement is in line with Sandvik’s strategy to develop a strong foothold in the fast expanding mid-market for mining equipment,” he said.
Although the main goal is to provide products for China’s market, the long term aim of the venture is to become the leading mining equipment supplier in other parts of the world.